Hotel Sales Rise 150% In First Quarter
Published on Mar 31 2014 8:59 AM in Hotel
The value of hotel sales in the first quarter of 2014 is 150% higher than at the same time last year.
Savills estate agents calculate that 13 hotels have been sold so far this year and that the total value of the deals was €85 million. That compares to six hotel sales for €34 million in 2013.
Savills also report that the figures do not factor in the number of hotels that are also now sale agreed.
Tom Barrett, Head of Hotels and Leisure at Savills said: “It has been a solid start to the year for the Irish hotel property market with almost €150 million of hotels sold or at the sale agreed stage.
"Demand is certainly high and the emergence of funds targeting hotel acquisitions should continue to drive demand for hotels in prime locations. Combined with a steady flow of hotels coming for sale, we expect the volume and value of hotel transactions in 2014 to exceed the €200 million of sales last year.
"Based on the first three months and our visibility of what is coming to market, we expect sales to exceed €300 million this year."
Some of the more notable hotel sales in Q1 included the Hilton Hotel Dublin for approximately €30 million and the former Clarion Dublin Hotel Airport Hotel, and Doonbeg Golf Resort, both in the region of €15 million.
Barrett commented further, saying that the rising number of visitor numbers into Ireland bodes well for the property market.
"2013 was a very good year for tourism with the number of visitors from our key markets in Britain and North America rising strongly. This growth has continued into 2014 and we expect it to have a positive influence on the hotel sector."